- Trade
- Import Services
- Letter of Credit Issuance
Letter of Credit Issuance
Guarantee payment to your suppliers
- Trade
- Import Services
- Letter of Credit Issuance
Letter of Credit Issuance
Guarantee payment to your suppliers
A Letter of Credit (LC) is issued at your request to assure payment to your supplier up to a stated amount, within a prescribed time.
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Stronger ties
Build stronger relationships and support new business opportunities
![on your terms icon](/documents/276102/283080/006.png/d725b938-08aa-e318-fea5-1eae95ea95de?t=1562733760217)
On your terms
Ensure the necessary documents are received for goods clearance
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Secure
Documents are checked for compliance and terms before you make payment
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Help when you need it
Our experts can offer you advice and expertise
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Leverage our “AA-” and “Aa1” credit ratings
Provide your sellers with assurances of payment through our Letters of Credit
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Save time and ensure fast delivery
Apply for a Letter of Credit online via DBS IDEAL
Sight Letter of Credit | |
Issuing bank will honour payment at “sight”, meaning payment is made once documentation received is in order. |
Usance Letter of Credit | |
Issuing bank will accept the draft once all documentation received is in order and agree to pay on the due date. |
Red Clause Letter of Credit | |
Allows the issuing bank to make a partial advance payment to the seller upon receipt of documentation. |
- The buyer and seller enter into a contract and agree that payment be made on the basis of Letter of Credit
- Buyer approaches DBS (issuing bank) to issue Letter of Credit in favour of the seller
- DBS issues Letter of Credit which is advised through its branch or correspondent bank (advising bank) in the seller’s country
- Advising bank advises Letter of Credit to the seller
- Upon receipt of the Letter of Credit, the seller prepares shipment and delivers documents to presenting bank
- Presenting bank despatches documents to DBS for payment
- DBS pays the presenting bank upon verifying the documents are in order
Upon receipt of payment, presenting bank pays the seller - Buyer pays the document amount to DBS
- DBS forwards the documents to the buyer, who can now use them to obtain the goods
Submit your application through one of the following channels:
-
SmartForm
-
API*
*Contact your Relationship Manager or call us at 1800 222 2200 for more information.
Can you issue a Letter of Credit to my seller, without a DBS facility? | |
Please refer to Online Letter of Credit |
How do I complete the LC application form? | |
Please refer to our explanatory notes or contact us. |
![Mr. Chandru Dadlani, Director - Aakash International Pte Ltd](/documents/276102/282999/mr-chandru-tb-60x60.jpg/1f991fd2-f89a-037d-7f23-fd37cb913bad?t=1563504622381&imagePreview=1)
“DBS helps us a lot in establishing whether the market, bank and customers are good enough for us.”
Mr Chandru Dadlani, Director - Aakash International Pte Ltd
That's great to hear. Anything you'd like to add?
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